Newsletters
Türkiye plans to secure over $40 billion in external financing from international institutions over the next three years as part of its broader economic strategy, Treasury and Finance Minister Mehmet Simsek said Wednesday.
The funding, he said, would support development-focused projects and contribute to long-term economic stability.
Türkiye has already secured $17.4 billion in external financing from international institutions across 2023 and 2024, with an additional $7 billion raised so far in 2025, Simsek told Reuters.
The government’s current financing strategy is anchored in cooperation with the World Bank, the Islamic Development Bank, and the Asian Infrastructure Investment Bank (AIIB), in addition to other global lenders.
Simsek emphasized that Türkiye’s disinflation process is progressing steadily and is expected to bring inflation down to single digits by 2027.
Türkiye's annual inflation slowed to 33.5% in July 2025, down significantly from the peak of 75% in May 2024.
He reiterated confidence in the central bank’s year-end inflation forecast, which anticipates a range between 19% and 29%. Inflation is projected to fall below 20% in 2026. “Disinflation is progressing along our projected path. What matters to us is that this improvement is lasting and stable,” he said.
Simsek underlined the role of monetary policy in curbing inflation through the channels of demand, exchange rates, and market expectations. He added that coordination with fiscal, income, and supply-side policies would help reinforce the disinflation process.
In July, the central bank resumed its monetary easing cycle, cutting its benchmark interest rate by 300 basis points to 43%, following a pause earlier in the year due to downturns in both domestic and global markets.
Simsek acknowledged potential upside risks to inflation stemming from oil prices, foreign trade tariffs, and unprocessed food costs, as a severe frost in April—considered the harshest in a decade—caused major losses in crop yields. However, he stated that the government is prepared to take the necessary steps to prevent these risks from undermining disinflation efforts.
While the medium-term economic program had projected 4% gross domestic product (GDP) growth for 2025, Simsek said growth could come in “slightly below” the target, describing the outlook as a “temporary slowdown” rather than a sharp downturn.
The Turkish economy expanded by 2% in the first quarter of the year, down from 3% in the previous quarter.
The current account deficit is expected to be lower than medium-term program targets, with a goal of reducing the current account deficit to 2% of GDP by 2025.
On the fiscal front, Simsek said that while budget revenues may fall short of projections due to slower growth and inflation-related adjustments, the government remains committed to spending discipline.
“We will not allow this process to be derailed,” Simsek added, reaffirming Türkiye’s commitment to its multi-pronged economic program.
2 min read
2 min read
